E OBJ 5.01 MC

Charise is considering how much to charge for her small business’s products. Charise is involved in

• pricing.

• promotion.

• a place decision.

• a product decision.

A buyer is willing to pay $9.99 for a product. If the seller is willing to accept that amount, then $9.99 is the

• exchange price.

• demand.

• value.

• markdown.

Sellers must carefully set prices so that buyers feel they are receiving __________ value for their money.

• optimum

• no

• minimum

• little

What might happen if a business’s customers feel that they are not getting the most value for their money?

• Customers spend money elsewhere.

• Sales increase.

• Customers purchase more.

• Sales remain the same.

Can prices be set too low?

• No, the lower the price, the more willing the customer is to buy.

• No, the lower the price, the greater the product’s appeal.

• Yes, customers may feel quality is too high.

• Yes, customers may feel quality is too low.

With what do many customers associate price?

• Quality

• Discounts

• Comfort

• Location

To set prices, businesses must price the physical product and all of its associated

• services.

• features.

• physical characteristics.

• value.

A company decides to save money by shipping its products by truck instead of by plane. Which marketing mix element is pricing influencing in this example?

• Place

• Promotion

• Problem solving

• Product